where is the final accounts, page-4

The whole CMQ saga is an Epic joke.
The $3.1M burnt in August is still way too high even when you allow for the $0.5M fines and the $170K contribution to ASIC costs. The staff costs for June was $950K and even if you halved this with the 50 staff sackings it may make the $23M kitty stretch a little but not by much. If you estimate say a savings of $475K payroll reduction less retrenchment costs it will be will be at best around $4M which is a lot less than the 8.5% quarterly interest payable on the $60M convertible bond to Shark.

Now the company has gone back to square 1 looking for contracting out a product that CMQ does not have a manufacturing blueprint. After all the mucking around, they had to shut the plant down in June/July to make drastic changes to the hazardous manufacturing process. We know they have satisfied themselves (and no one else) that the FACILITY can operate at design capacity. Now after the multiple experiences reading the Teflon coated phrases CMQ used, you should note Mr Williams was actually describing the FACILITY and not MP1. Notwithstanding this, it is far-fetch to accept CMQ now has a proven commercial capability to produce the product. We must not forget the production capacity will only break even at 50tpa. CMQ now has a facility (may be not MP1) that management have satisfied themselves can operate at design capacity.

When the company’s credibility is already at an all time low and the CEO repeatedly used such ambiguous phrases, you have to assume that the plant has not achieve the 20tpa nameplate capacity, let alone the 50tpa ‘breakeven capacity’.

It is time to face hard facts and no more bull-dusts Epic performances.